Introducing the 5/4 short-cover technique!

EA developers are Reiwa’s Double E.

This time“Introduction to the Short Cover Method”is.

Do you know the term “short cover”?

Short cover is a phenomenon that occurs when the market can no longer hold short positions.

Most market participants, especially speculative traders, hold short positions, and

when they can no longer hold short positions, there are fewer people taking new short positions.

Therefore, in such a situation, prices, that is, the rate, become difficult to fall.

As a result, those who were holding short positions begin to close them.

Then the price keeps rising.

Furthermore, those who unwound their short positions look at the rising price and enter new short positions, but

because the unwinding of short positions is still dominant, the price continues to rise, and

as new short positions are taken, their losses are cut, pushing the price even higher.

This is the phenomenon called short cover.

Now, here is the main topic, but

This short cover is especially likely to occur at timing such as ...